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All eyes may be on Bitcoin (BTC), but an analyst is suggesting that it may be time to pay Ethereum (ETH) some heed. The second-largest cryptocurrency has struggled alongside BTC as of late, falling by a similar amount to the market leader.

Like Bitcoin, ETH is stagnating, though technical indicators suggest impending volatility for the asset. And fortunately for bulls, the market’s bias seems to be leaning in the upward direction, not downward.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Ethereum Ready to Break Out? 

Popular technical analyst Crypto Thies recently reminded his followers to keep an eye on ETH. In a post published on Friday night, he noted that with the Directional Movement Index (DMI) and Volume Moving Average at historic supports, volatility may be had.

While Thies did not indicate in which direction he expects for Ethereum to head — he just laid out the facts and let readers decide — there seems to be a bigger presence of bullish technical indicators on the charts he posted: his proprietary Market God signal flashed a one-day buy signal, which is something that has preceded strong surges higher in the past, and flashed a sell signal for the  12-hour Bitcoin dominance chart. This implies ETH will have some strength in the coming weeks.

Related Reading: Crypto Tidbits: Bakkt’s Bitcoin Market Explodes, Huawei CEO Skeptical of Blockchain, FBI Wary of Cryptocurrency

Also, the asset’s fundamentals have remained strong, despite the downturn seen over the past few months. As reported by this outlet previously, Ethereum-based “decentralized finance” has quickly exploded; reports that there is over $650 million worth of assets locked in that facet of ETH.

There is also a record amount of Ethereum at 2.42 million, or 2.2% of the entire supply locked in DeFi. The site also reports that there is $30 million worth of Dai stored in DeFi which is almost a third of its supply now that it has reached the milestone $100 million.

Dependent on Bitcoin’s Price Action

It is important to note, however, that Ethereum’s price action is mostly predicated on that of Bitcoin, as the leading cryptocurrency determines in which direction the entire market will head. Indeed, if BTC heads higher, so do altcoins; the opposite is also true. So — what’s next for Bitcoin?

According to a number of analyses, some short-term weakness, which will play out for Ethereum too. Per previous reports from NewsBTC, analyst Neko remarked that Bitcoin’s “bullish volume looks extremely weak” and that BTC has broken crucial support at $9,000, implying a drop further. He added that with Mondays typically being “bloody,” a drop to the $8,000 region is entirely possible.

Related Reading: Is Bitcoin Really Doomed? Analysts Skeptical of Bear Bias After $400 Drop
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Nick Chong , 2019-11-10 17:00:39

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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